Advani Hotels reports record revenue and 100 per cent dividend payout
Advani Hotels & Resorts (India) Limited has announced a 1:1 bonus share offering and a 100 per cent dividend, following its unaudited financial results for the quarter and nine-month period ending December 31, 2023.
The company reported a highest-ever revenue of INR 3,304 lakhs in Q3 FY24, marking 11 per cent year-on-year growth. The profit before tax (PBT) for the same quarter stood at INR 1,270 lakhs, reflecting an 8 per cent YoY increase.
As of December 31, 2023, the company is debt-free, with liquid fund reserves (including fixed deposits) totaling INR 4,812 lakhs, even after a 70 per cent interim dividend payout of INR 647 lakhs in June 2023 and cash outflows for capital expenditures during the nine-month period.
Despite a decline in demand for Goa, attributed to domestic tourists choosing overseas holidays and a reduction in Russian tourists, Advani Hotels & Resorts (India) Limited reported an impressive Q3 2023 performance. EBITDA increased by INR 106 lakhs compared to the same period last year, albeit with EBITDA margins declining by 1 per cent due to strategic investments in workforce expansion. The profit after tax (PAT) reached INR 931 lakhs, marking 6 per cent growth. Notably, average occupancy rates for October, November, and December 2023 improved to 82.4 per cent, 82.3 per cent, and 91.3 per cent, respectively, compared to the same period in 2022. Additionally, average revenue per occupied room per night after subtracting taxes exhibited positive growth. The company announced an interim dividend of 100 per cent, equating to INR 2 per share, with a pay-out of INR 924 lakhs scheduled within the next 30 days.
Prahlad S. Advani, CEO and Whole-Time Director, expressed gratitude: “On behalf of the Board of Directors, I’m very grateful to our team at Advani Hotels and the Caravela Beach Resort Goa for their dedication and hard work. Through their enthusiasm and teamwork, we have achieved significant milestones along with impressive financial results in Q3 FY24.
In a broader industry context, a report by NOESIS suggests that while the hospitality sector is experiencing positive revenue growth, profitability may not be directly proportional due to increased expenses in full-scale services and manpower since Q3 FY23.
Advani Hotels & Resorts (India) Limited, a publicly traded company incorporated in 1987, owns and operates the 'Caravela Beach Resort Goa,' a 201-key, 5-Star Deluxe golf resort. The audited results for the financial year 2022–2023 indicate a noteworthy set of financial ratios, with the company being debt-free and consistently rewarding shareholders through dividends. After the recent interim dividend declaration, the total dividends paid over the last ten years will amount to INR 66.67 crore (including dividend tax). Dividends have been paid in ten out of the last eleven years, with the exception of the financial year 2020–2021, when the resort was closed for six months due to the COVID-19 pandemic.
